Benchmark indices, NSE Nifty 50 and BSE Sensex continued their downward trend from the previous session and ended Thursday’s trading session in the red zone. The NSE Nifty 50 crashed 144.90 points or 0.74% to 19,381.65 and the 30-share Sensex tumbled 542.10 points or 0.82% to 65,240.68. Among the broader market indices- Nifty Next 50 sank 0.74% and Nifty 100 plunged 0.70%, while Nifty Midcap 50 gained 0.139%, and Nifty Smallcap 100 rose 0.12%. The volatility index, India VIX surged 0.82%. In sectoral indices, Bank Nifty tanked 1.07%, Nifty Auto fell 0.32%, Nifty Financial Services tanked 1.17%, Nifty IT slipped 0.24%, Nifty Metal fell 0.47% and the Nifty Realty Index tanked 1.78% while Nifty Media surged 0.91%, Nifty Pharma soared 1.04% and Nifty Healthcare Index jumped 0.68%. The top gainers on Nifty 50 were Adani Enterprise, Adani Ports & Special Economic Zone, Eicher Motors, Divi’s Labs and Hindalco Industries, while the top losers were Titan Company, ONGC, Bajaj Finserv, ICICI Bank and Nestle India.
“Global markets are still grappling with the impact of the US rating downgrade, with spiking bond yield and a strengthening dollar index. However, the pharma sector has managed to weather the storm thanks to its strong earnings outcome, while mid and small-cap stocks have outperformed the benchmark index. The domestic service PMI has surpassed market expectations, reaching a 13-year high due to a rise in new orders, particularly in international sales,” said Vinod Nair, Head of Research at Geojit Financial Services.
Where are NSE Nifty 50, Bank Nifty headed?
Nifty 50 immediate support at 19285; resistance at 19560 – 19590
“The Nifty opened a gap down today and continued to drift lower throughout the day to close in the negative down 145 points. On the daily charts, we can observe that the Nifty has witnessed follow-through selling pressure and closed in the negative for the second consecutive session. On the downside, it has drifted towards a 40-day moving average (19285) which can act as an immediate support zone to watch out for. On the upside, the key hourly moving average placed in the range 19,560 – 19,590 shall act as an immediate hurdle zone from a short-term perspective. Considering the sharp fall in the last couple of trading sessions we can expect a pullback/consolidation over the next few trading sessions. Overall, the trend is still negative, and we expect levels of 19100 from a short-term perspective,” Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.
Bank Nifty can bounce till 45000 – 45200
“Bank Nifty has also witnessed a continuation of the fall. It has closed below the 40-day moving average (44861) which is a sign of weakness. On the downside, the fall appears overstretched and hence a pullback cannot be ruled out. It can bounce till 45,000 – 45,200 where the key hourly moving averages are placed. Overall, the trend is still negative and we expect it to drift lower to 44000 in the short term,” Jatin Gedia added.